What are the different ways to pay for solar in Maine?

The three main ways to pay for solar in Maine are cash, a solar loan, and an Energy Service Agreement.

What is the best way to pay for solar panels in Maine?

How you choose to pay for your solar system depends on your budget, goals, and priorities. Paying in cash is ideal if you want to own your system immediately with a lower total cost than a solar loan. A traditional solar loan is best if you want to own your system immediately, but can't afford to pay in full with cash. A Propel Energy Service Agreement is best if you want the lowest overall system cost and don't mind not owning your system for the first five years after it is installed.

How can I own my own solar array in Maine?

You can own your own solar system in Maine by paying for it in cash, using a traditional solar loan, or entering into a Propel Energy Service Agreement. With a Propel ESA, ownership transfers to you after the first five years.

What is the difference between an Energy Service Agreement and a solar lease or PPA?

An Energy Service Agreement (ESA) is a pathway to full ownership of your solar system after five years. A solar lease or PPA allows you to access the electricity the system produces at a lower rate than you would get without solar, but you do not own the system on your roof.

How much can the average Maine homeowner save with solar?

How you choose to pay for your system impacts overall savings. A typical Maine homeowner who uses around 650 kWh per month can save thousands over the lifetime of their system, no matter how they choose to pay. After the system pays for itself, the remaining years of production—often 20 years or more—are essentially free.

Is it better to buy or lease solar panel in Maine?

It is generally more cost-effective to own a solar system than lease. Both leasing and owning your solar system will reduce your electrical costs in the short-term. But there are long-term benefits to owning your own system. Leasing a solar system requires little or no upfront cost. However, the downside is that you will pay to lease the panels for the full length of the lease. When you own your own system, your system typically pays for itself in 8 to 12 years. The average Maine homeowner saves significantly more money purchasing their system than they would leasing one for the same duration.

How To Pay For Solar In Maine: Cash vs Loan vs Propel ESA (Key Differences & Costs)

Cost savings. Energy independence. Predictable monthly costs. A more sustainable and efficient home. There are numerous benefits to owning your own solar system. But how can you pay for solar in Maine?

Many Maine homeowners might not know that paying in full with cash isn’t the only way to go solar. In fact, there are multiple ways to pay, each with different costs, ownership timelines, and flexibility. Choosing how you pay for solar depends on your budget, timeline, and priorities.

Let’s explore the three ways to pay for your solar system, how they differ, and how to assess which might be best for you.

How Can You Pay For Solar In Maine?

Once you’ve decided to install solar at your home, the next step is deciding how to pay for it. There are three primary ways to pay for solar:

Cash

This is the most straightforward option. Paying upfront in cash eliminates monthly payments you would have to make with the other two payment options. It also means you own your system immediately with no additional loans or contracts. When you pay in cash, you get to choose the equipment used in your project, such as panels and inverters.

Traditional Solar Loan

Taking out a standard solar loan gives you immediate ownership of your system with predictable monthly payments. It works like a typical home improvement loan. While the total system cost is usually higher than paying in cash or using a Propel Energy Service Agreement due to interest and fees, it offers flexibility, including the ability to choose your equipment.

Propel Energy Service Agreement

Entering into an Energy Service Agreement (ESA) can offer one of the lowest overall system costs. ESAs allow certain commercial solar incentives to be applied to residential projects. You benefit from the electricity your system produces from day one, with ownership transferring after five years.

This structure helps reduce the upfront costs while still providing a clear, guaranteed path to ownership. There are a few limitations during the first five years, including the use of specific equipment and restrictions on adding panels.

How To Choose The Best Payment Option For You

While every household’s finances are unique, there are factors that can make one payment method a better option for you than the others.

Generally speaking, cash tends to be best for homeowners who want to own their own system immediately and outright, with no loans, contracts, or monthly payments. It offers a lower overall system cost than taking out a traditional solar loan, although you must be able to afford the full system cost upfront.

Traditional solar loans tend to be best for homeowners who want to own their system immediately and want the flexibility to add panels or batteries at will. This option comes with the highest overall system cost, but predictable monthly payments that are often lower than the property’s current monthly electric bill.

Propel ESAs tend to be best for homeowners who want the lowest overall system cost. These homeowners decide they don’t mind not owning their system for the first five years or having to use a specific set of equipment for their project.

Here is a detailed comparison of the payment options to help you decide which will work best for your goals:

Want To Learn More?

Watch our recent webinar for a deeper look at how to pay for solar in Maine. If you’d like help comparing these options for your home, our team can walk you through what to expect and what might make the most sense for your situation. Get in touch at info@mainesolarsolutions.com!